Canada’s three territories will see modest but consistent economic growth starting in a year or two, according to the Conference Board of Canada.
A new report has confirmed what we’ve known for some time now: that the NWT economy has been stuck in neutral for 2016.
But it also indicated that the territory’s gross domestic product (GDP) is forecast to grow more than 15 per cent next year as Gahcho Kué comes into full production.
The diamond mine will officially open next Tuesday and is expected to reach a commercial level of production in the first quarter of 2017.
To the east, Nunavut’s economy is expected to grow by nearly five per cent in 2017 as new gold mines open. The same can’t be said for Yukon though, where the last operating mine is scheduled to close next year.
Much like the NWT and Nunavut, Yukon is heavily dependent on mining and has been hammered by low commodity prices.
By 2020 however, the Conference Board of Canada reckons all three territories should see solid, sustainable growth as commodity prices begin to stabilize.
Overall, the board expects the three territories to average three per cent growth every year between 2020 and 2030, with mining accounting for most of that growth.